Buying an e-Commerce Store as a Going Concern – A Step by Step Guide

Buying a working Shopify site can be a shortcut to e-commerce success. It is perfect if you find the setup stage daunting and want a quick start. You can buy a starter store with a few products listed for $50, and a more established site for upwards of $150.

This guide on how to start an eCommerce business is essential reading if you are thinking about buying or starting an online store.

Step #1 – Set Up Your Payment Processor

You will need your own payment processor because you can’t take over the vendor’s account. If you set up your Shopify account as part of your buying process, you will see it includes payment processing services. Keep things simple at first and go with the default payment option.

E-commerce platforms all have integrations with PayPal and other payment gateways, but that is a step that can be left until your store is up and running under your control.

Step #2 – Find a Store

Shopify has a list of ready-made stores for sale. These start at $50.

If you pay a bit more, you can choose a store with a proven sales record and thousands of visitors every month. Hover over the store image.

Choose a store you will enjoy owning in a niche you know something about.

Step #3 – Buy Something from the Store

Once you have found a store you are thinking of buying, you should test the store’s selling experience by buying a low-cost item. This lets you see the store from a customer’s viewpoint.

Are you asked to sign up to an email list or invited to join a Facebook group? These are both highly desirable aspects of the after-sales service as described in this Special Report. You can set them up yourself, but you could use the lack of social accounts to negotiate a lower price.

Step #4 – Contact the Vendor

No listing for sale will answer all your questions. It’s like buying a house where the realtor never tells you anything negative unless you ask.

Points you need to clarify with the vendor include:

  • Addresses of any social accounts linked to the site and whether these are included in the price
  • Is there an email list included, and statistics on email opens and clicks?
  • Is there any stock held, and at what price is it available?
  • Are contact details for suppliers included?
  • Does the store use drop shipping?
  • What apps are installed?
  • How much help will the vendor give you after the sale?
  • Can payment be made through an escrow service such as escrow.com, and who will pay the fees?

Step #5 – Ask for Accounts

The vendor should be happy to provide you with accounts, though sales figures are available automatically through the Shopify sales page. You need to see the overheads for yourself, including how many items are returned because chargebacks can destroy your standing with your payment processing service.

Step #6 – Make Your Decision

The store may have paid apps installed which contribute to the store’s overall feel and functionality. Include the cost of these apps in your decision-making process.

It is common for a store to lose sales in the months before being offered for sale. This might be due to apathy on the part of the owner. A decline in sales is not necessarily a reason to back out, but you will need a marketing plan to turn things around.

Step #7 – Make an Offer

Decide what you are happy to pay and make an offer. The vendor’s asking price is not set in stone, and many will negotiate. When your proposal is agreed then pay the amount into your chosen escrow service and follow the instructions they give about releasing the money the vendor.

Step #8 – Take over the Store

To use the store, you will need accounts with suppliers. If you want to accept PayPal accounts, you will need to link your account.

You will need unique descriptions for each product if you want to rank in search engines. Research keywords that shoppers use and include them in your descriptions.

Executive Summary

Buying a working Shopify store saves some hassle in that you get a working store, instantly. However, you will need to set up an account with a payment processor as well as with vendors. If you understand the niche, you should be able to increase sales, especially if the store you bought has been neglected for a few months.

It is worth looking for a store with an active email list, Facebook page/group, Pinterest,  Snapchat and Twitter accounts because having an initial social presence on each channel will give you a kickstart.

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